For both domestic and Chinese sourcing. It became apparent that certain "costs" were not wrapped into the original Chinese bid. But, common sense lost out to upper level decisions by a management team that turned a blind eye to longterm prospects and math.
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I can state from experience though that the US OEM's really didn't believe in their own cost models - sort of a "torpedos be damned" attitude. For GM, their growing manufaturing and sales base in China trumped all short term costs. The real goal was to develop the local manufacturing base in China, then do car assembly, then engineering ... until an entire car can be engineered, sourced and built there. This makes sense longterm, but the short term plan was to import the parts back into the US for assembly here, and the near term costs were simply overwhelming.
Many US producers have led customers thru the costing models, noting freight, quality, material variations, in transit losses, increased need for documentation and communications and increased management costs plus much more. Most guys will compete on an apples to apples basis, but quotes must be detailed for many to see the problems and the spreadsheets done for the purchaser to see the differentials.
I can state from experience though that the US OEM's really didn't believe in their own cost models - sort of a "torpedos be damned" attitude. For GM, their growing manufaturing and sales base in China trumped all short term costs. The real goal was to develop the local manufacturing base in China, then do car assembly, then engineering ... until an entire car can be engineered, sourced and built there. This makes sense longterm, but the short term plan was to import the parts back into the US for assembly here, and the near term costs were simply overwhelming.